The present invention relates to statistical and mathematical optimization techniques for production of subassemblies. More specifically, the invention relates to an optimization modeling tool that accounts for internal transportation of the subassemblies.
Transportation is a considerable factor in consideration of manufacturing costs. There are two categories associated with transportation costs, including internal and external. Poor planning and lack of visibility and communication lead to transportation waste and affect productivity. There are many causes of transportation waste, including overproduction, poor production planning, lack of communication, and inefficient transportation routes. When processes are not close to each other, parts and/or products need to be transported from one area to another.
In product layout, the product is produced in one production line and no transportation is required. In process layout, two or more production lines are used to build the product and the product has to be transported between lines. Internal transportation of parts and products in manufacturing environments effects productivity, cycle time, quality and inventory. Internal transportation in manufacturing environments is a non-value added activity. Although this identified transportation can be minimized, it cannot be eliminated.
Analytical and simulation models have been developed to solve problems with production and distribution in supply chains. However, these models do not take into account all aspects of product assembly, and as such are limiting. Accordingly, there is a need for a complete and effective product optimization model.